Correlation Between Neometals and Humana
Can any of the company-specific risk be diversified away by investing in both Neometals and Humana at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Neometals and Humana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neometals and Humana Inc, you can compare the effects of market volatilities on Neometals and Humana and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Neometals with a short position of Humana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neometals and Humana.
Diversification Opportunities for Neometals and Humana
Very good diversification
The 3 months correlation between Neometals and Humana is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Neometals and Humana Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humana Inc and Neometals is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Neometals are associated (or correlated) with Humana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Humana Inc has no effect on the direction of Neometals i.e., Neometals and Humana go up and down completely randomly.
Pair Corralation between Neometals and Humana
Assuming the 90 days trading horizon Neometals is expected to generate 1.67 times more return on investment than Humana. However, Neometals is 1.67 times more volatile than Humana Inc. It trades about -0.02 of its potential returns per unit of risk. Humana Inc is currently generating about -0.04 per unit of risk. If you would invest 625.00 in Neometals on September 1, 2024 and sell it today you would lose (150.00) from holding Neometals or give up 24.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.23% |
| Values | Daily Returns |
Neometals vs. Humana Inc
Performance |
| Timeline |
| Neometals |
| Humana Inc |
Neometals and Humana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neometals and Humana
The main advantage of trading using opposite Neometals and Humana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neometals position performs unexpectedly, Humana can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Humana will offset losses from the drop in Humana's long position.| Neometals vs. Charter Communications Cl | Neometals vs. Zegona Communications Plc | Neometals vs. British American Tobacco | Neometals vs. Melia Hotels |
| Humana vs. Greenroc Mining PLC | Humana vs. Invesco Physical Silver | Humana vs. GoldMining | Humana vs. Telecom Italia SpA |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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